Standard Life reports dip in first-half profits

The Edinburgh-based group said pre-tax profits dipped to £210 million in the first-half, down from £332 million last year, which was largely down to cost of integrating the asset management firm Ingis it acquired last year and closing its Singapore office

Standard Life has reported a 37 per cent fall in first-half pre-tax profits, largely on restructuring and integration costs.

The Edinburgh-based group said pre-tax profits dipped to £210 million in the first-half, down from £332 million last year, which was largely down to costs associated with integrating the asset management firm Ingis it acquired last year and closing its Singapore office.

However first-half profits were also dented by a drop in sales of fixed-rate annuities following pension reforms introduced last year, with annuity sales down 66 per cent in the first-half.

The group expects the contribution from annuities for the full year will be down by between £10 million and £15 million.

Assets held in annuities dipped from £15.5 billion at the 2014 year-end to £13.9 billion at the end of June.

Standard Life said it also expects the contribution from asset liability management will be down by between £30 million and £40 million against 2014 figures.

However fee-based revenue rose 17 per cent to £761 million.

Standard Life said it also added 120,000 new UK workplace pension customers in the six month period which helped lift auto-enrolment contributions 15 per cent.

A further 65 financial advisors signed up to use Standard Life's investment wrap platform in the first half, taking the total number of advisors to 1,405 and taking assets under management on the platform to £24.3 billion, up from £21.5 billion last year.

On an operating level profits rose six per cent to £290 million.

The group is reporting its last financial update under the leadership of David Nish, who surprised the market in June when he announced he will step down on August 5 after less than six years in the role.

Nish, who the Financial Times reported will have earned £25 million in that time, will be replaced by Standard Life Investments chief, Keith Skeoch, who will also continue to run the investment arm.

Standard Life reports assets under management stood at £302.1 billion at the end of June, up two per cent on the £296.6 billion reported at the December year end.

Shares in Standard Life were down three per cent in early Tuesday trading.